According to the press release, CIRP polled 500 Amazon Prime customers in the third quarter and found that hardly any of them owned a Fire Phone. The survey also found that around one in four respondents owned one of Amazon's tablets or ereaders, and that around 5% owned a Fire TV.
The results for Fire and Kindle ownership were about what I would have expected; given the free ebooks and free streaming video, it makes financial sense for a Prime member to also buy one of Amazon's cheap devices. And it is equally obvious that that incentive doesn't extend to Amazon's $650 smartphone.
"Our data shows that Amazon hardware devices have mixed results," said Mike Levin, partner and co-founder of the research group in a press release Wednesday. "Effectively zero percent own an Amazon Fire Phone. In contrast, approximately one quarter of US Amazon customers have either or both of a Kindle Fire tablet and Kindle Reader, and about 5% report owning the new Amazon Fire TV set-top box. Though anecdotal accounts suggest Amazon has sold a few thousand Fire Phones, none of the 500 recent Amazon customers in this quarter’s survey reported owning one."
Amazon hasn't shared sales figures, but in late August a guesstimate went around that pegged Fire Phone sales at 35,000 units. I didn't believe that guess at the time, but now it seems that it was not inaccurate.
Released in early July with a retail price of $650, the Fire Phone was initially available from AT&T at a subsidized price of $199. Amazon dropped the subsidized price to under a dollar in early September, but that does not appear to have boosted sales all that much.
The reasons for the Fire Phone’s failure are both obvious and numerous: the subsidized price is an AT&T exclusive, it costs as much as the iPhone 6 or Galaxy S5 without offering that smartphone's extensive app ecosystem, and it has an excess of gimmicky features but no single killer feature.
I think it's safe to say that the Fire Phone has been extinguished, don't you?